Mortgages Still Cheap — Freddie Mac
The interest rate on a 30-year fixed-rate mortgage fell to an average of 3.55% last week according to Freddie Mac. That is identical to last week’s average, and well below the year-ago rate of 4.09%. The all-time low of 3.49%…
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A 15-year fixed-rate loan averaged 2.85%, besting the 2.86% rate from a week ago. A year ago the rate stood at 3.30%. The record low rate for a 15-year fixed rate loan is 2.80%.
The interest rate on a Treasury-indexed hybrid 5-year adjustable-rate mortgage loan averaged 2.72%, down from 2.75% last week, and down from 2.99% a year ago.
According to a Freddie Mac executive:
Despite a lackluster August employment report, Treasury bond yields and mortgage rates were little changed this week with the financial markets speculating on further monetary stimulus from the Federal Reserve.
The FOMC has just announced that it will begin purchasing mortgage-backed securities at the rate of $40 billion monthly. We have more coverage here.
Paul Ausick
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.